Interest: How much is paid for the use of money (as a percent, or an amount).
People can always find a use for money, so it costs to borrow money.
Different places charge different amounts at different times!
But they usually charge this way:
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As a percent (per year) of the amount borrowed |
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It is called Interest |
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Simple interest is calculated using the same principal throughout the period of
payment of interest using the formula given below.
Interest = Sh 54 200 x 16/100 x 3 = Sh 26 016
Using the formula A = P + I
Where
A – amount paid
P – principal
I – interest
Amount = Sh 54 200 + Sh 26 016 = Sh 80 216
1. A bank charged interest at the rate of 10 % per annum. Omolo borrowed sh 2400 from this bank and repaid the loan at the end of 9 months. How much did he pay?
A. Sh 2400 B. Sh 2580 C. Sh 2640 D. Sh 4560
2. Musungu took a loan of sh 25000. After 24 months he paid sh 30000. If this amount included simple interest, at what rate, per annum, was the interest charged?
A. 2.0 % B. 0.83 % C. 8.3 % D. 10.0 %
3. A businessman deposited sh 8000 in a bank which paid interest at the rate of 12 % per annum. He withdrew the whole amount deposited and the interest earned at the end of 9 months. How much did he withdraw?
A. Sh 720 B. Sh 960 C. Sh 8720 D. Sh 8960
4. Wanjiru deposited a certain amount of money in a bank which paid simple interest at the rate of 15 % per annum. At the end of 9 months, she withdrew all the interest amounting to sh 360. How much money had she deposited in that bank?
A. Sh 3200 B. Sh 1800 C. Sh 414 D. Sh 2400
5. Ali lent Juma sh 4000 to start a business. After 8 months Juma gave Ali sh 4800 as a refund of the money. At what rate, in percentage per annum, did Ali’s money earn the interest?
A. 30 % B. 25 % C. 20 % D. 2.5 %
6. Obel deposited sh 2400 in a bank. At the end of 9 months he withdrew all his money from the bank. The total amount withdrawn was sh 2700. What interest percent per annum did this bank pay?
A. 14 22/27% B. 9 3/8% C. 16 2/3% D. 12 1/2%
7. Gitonga deposited sh 8400 in a bank which gave interest at the rate of 10 % per annum. How much money altogether did he have in the bank at the end of 7 months?
A. Sh 490 B. Sh 840 C. Sh 8890 D. Sh 9240
8. Kirimi deposited sh 12000 in a bank that paid simple interest at a certain rate. At the end of 6 months he withdrew sh 540 which was the interest remaining after the bank had deducted sh 60 commission. At what rate per annum did the bank pay the interest?
A. 5 % B. 8 % C. 9 % D. 10 %
10. Kawira deposited sh 7500 in a bank which paid interest at the rate of 15 % per annum. At the end of 4 months, she withdrew the money she had deposited and the interest earned. How much money did she withdraw altogether?
A. Sh 12000 B. Sh 8625 C. Sh 7875 D. Sh 375
